BP p.l.c. (BP) AI Stock Analysis

• Market Cap: £65.04B
• Dividend Yield: 5.73%
• Average Volume (3M): 26.71M
• Price to Earnings (P/E): 59.3
• Beta (1Y): 1.04
• Revenue Growth: -6.90%
• EPS Growth: -43.82%
• Country: UK
• Employees: 100,500
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.11
• Shares Outstanding: 15,613,291,000
• 10 Day Avg. Volume: 25,231,935
• 30 Day Avg. Volume: 26,714,907
• PEG Ratio: -2.16
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 6.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £471.82
• Price Target Upside: 10.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: 500.00p ▲(17.48% Upside)

BP's overall stock score is driven by strong earnings call results and positive technical indicators, reflecting robust operational performance and strategic progress. However, high leverage and a high P/E ratio suggest caution. The attractive dividend yield provides a counterbalance, offering income potential for investors.

Positive Factors

Operational Efficiency

BP's strong operational performance and strategic progress, including exploration successes, indicate robust efficiency and potential for sustained growth.

Exploration Success

Significant exploration discoveries enhance BP's resource base, supporting long-term production growth and competitive positioning in the energy sector.

New Projects

Timely completion of new projects strengthens BP's production capabilities and market presence, ensuring future revenue streams and operational stability.

Negative Factors

High Debt Levels

High leverage poses financial risks, potentially limiting BP's flexibility to invest in growth opportunities or weather economic downturns.

Declining Revenue Growth

A sharp decline in revenue growth indicates market challenges and pressures on BP's ability to maintain profitability and shareholder returns.

Liquidity Challenges

Decreasing free cash flow growth suggests potential liquidity issues, which could impact BP's capacity to fund operations and strategic initiatives.

BP p.l.c. Business Overview & Revenue Model

Company Description

BP p.l.c. engages in the energy business worldwide. It operates through Gas & Low Carbon Energy, Oil Production & Operations, Customers & Products, and Rosneft segments. It produces and trades in natural gas; offers biofuels; operates onshore and offshore wind power, and solar power generating facilities; and provides de-carbonization solutions and services, such as hydrogen and carbon capture and storage. The company is also involved in the convenience and mobility business, which manages the sale of fuels to retail customers, convenience products, aviation fuels, and Castrol lubricants; and refining and trading of oil products, as well as operation of electric vehicle charging facilities. In addition, it produces and refines oil and gas; and invests in upstream, downstream, and alternative energy companies, as well as in advanced mobility, bio and low carbon products, carbon management, digital transformation, and power and storage areas. The company was founded in 1908 and is headquartered in London, the United Kingdom.

How the Company Makes Money

BP generates revenue primarily through the exploration, extraction, and sale of oil and natural gas. The company earns money by selling crude oil and natural gas to refineries and other customers, as well as through its refining operations, where it processes crude oil into various petroleum products. Additionally, BP has a significant retail segment that sells fuels and convenience store products to consumers through its global network of service stations. The company also invests in renewable energy projects, which contribute to its earnings as global demand for green energy increases. Key revenue streams include upstream activities (exploration and production), downstream operations (refining and marketing), and renewable energy investments. BP's strategic partnerships and joint ventures with other energy companies also enhance its capabilities and market reach, contributing to its overall profitability.

BP p.l.c. Financial Statement Overview

Summary

BP demonstrates a strong recovery in revenue and operational performance, with significant improvements in margins and cash flow generation. However, the company faces challenges with high leverage and low net profit margins, which could impact long-term financial stability. Continued focus on improving profitability and managing debt levels will be crucial for sustained growth.

Income Statement

BP's income statement shows a strong recovery with a significant revenue growth rate of 61% in the TTM period, indicating a robust rebound from previous declines. Gross profit margin and EBIT margin have improved, reflecting better operational efficiency. However, the net profit margin remains low at 0.33%, suggesting challenges in translating revenue growth into net income.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 1.27, indicating a relatively high level of leverage, which could pose risks if not managed carefully. Return on equity is low at 1.07%, suggesting limited returns for shareholders. The equity ratio is stable, showing a balanced asset structure.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 24.23% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.28, reflecting adequate cash flow relative to net income. However, the free cash flow to net income ratio of 0.37 suggests room for improvement in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	186.58B	185.23B	213.67B	240.86B	154.71B	112.38B
Gross Profit	36.20B	28.11B	47.39B	54.05B	21.65B	-534.61M
EBITDA	31.08B	25.11B	42.89B	29.37B	27.82B	-7.46B
Net Income	1.56B	382.83M	15.50B	-2.48B	7.42B	-21.54B
Balance Sheet
Total Assets	280.46B	282.23B	280.29B	288.12B	287.27B	267.65B
Cash, Cash Equivalents and Short-Term Investments	35.05B	34.52B	28.59B	29.77B	30.96B	29.53B
Total Debt	74.82B	71.55B	63.08B	55.49B	69.79B	81.93B
Total Liabilities	202.81B	203.91B	194.80B	205.13B	196.83B	182.09B
Stockholders Equity	58.24B	59.25B	70.28B	67.55B	75.46B	71.25B
Cash Flow
Free Cash Flow	10.67B	12.00B	17.75B	28.86B	12.72B	-144.00M
Operating Cash Flow	24.30B	27.30B	32.04B	40.93B	23.61B	12.16B
Investing Cash Flow	-11.24B	-13.25B	-14.87B	-13.71B	-5.69B	-7.86B
Financing Cash Flow	-12.51B	-7.30B	-13.36B	-28.02B	-18.08B	3.96B

BP p.l.c. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 425.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP, the sentiment is Neutral. The current price of 425.6 is below the 20-day moving average (MA) of 429.58, below the 50-day MA of 444.09, and above the 200-day MA of 400.78, indicating a neutral trend. The MACD of -5.29 indicates Positive momentum. The RSI at 43.52 is Neutral, neither overbought nor oversold. The STOCH value of 19.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:BP.

BP p.l.c. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHEL	73 Outperform	£150.06B	14.08	8.25%	4.00%	-9.21%	-2.61%
ENOG	73 Outperform	£1.68B	10.29	17.24%	10.99%	-2.66%	0.11%
SEPL	71 Outperform	£1.75B	10.85	12.03%	5.64%	159.13%	143.76%
BP	71 Outperform	£65.04B	59.28	2.40%	5.73%	-6.90%	-43.82%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
HBR	63 Neutral	£3.15B	-8.41	-11.32%	8.77%	123.03%	-330.89%
ITH	54 Neutral	£2.61B	-29.76	-4.67%	14.05%	63.10%	-161.03%